INTRODUCTION TO HOTEL

ACCOMMODATION
MANAGEMENT
CONTENT & REFERENCES
Content
 The growth of accommodation industry by different
founder
 Competencies of accommodation industry
 Challenges in managing accommodation industry

References
 Bardi, J. A. (2011) Hotel Front Office Management.
5th Ed. USA: Wiley.
 Raghubalan, G. & Smritee, R. (2011) Hotel
Housekeeping Operations and Management. 2nd Ed.
Oxford Higher Education.
 http://www.hotel-online.com
ALL ABOUT ACCOMMODATION
 The hotel industry ‘accommodation industry’ is a
significant part of any tourism destination. It is
an integral part of the facilities for tourism
activities.
 Accommodation categories:
1. Full-service accommodation
2. Limited-service accommodation
3. Resort accommodation
4. Suite
5. Convention accommodation
MANAGING ACCOMMODATION
 Seven major roles in managing accommodation
covers:
1. Asset protection
2. Managing supply and demand
3. Increasing income
4. Improving employee performance
5. Improving productivity
6. Managing customer service
7. Managing quality
FOUNDER OF THE ACCOMODATION INDUSTRY

 The history of the founders of the hotel industry

provides opportunity to reflect on our heritage.
 Studying the efforts of the hotel innovators who carved
out the modern hotel industry may help future
professionals with their own career planning.
 To have a better picture on the evaluation of
accommodation industry and how it can be used in
managing the current accommodation industry
FOUNDER OF THE ACCOMODATION INDUSTRY

 Ellsworth M. Statler 18th century (US);

started with chain hotel concept; highly
utilized all space for the accommodation
product.

1954 Statler sold the Statler chain to

Conrad Hilton

 Conrad Hilton late 18th century (US); career

start up after WWI ; he formed the hilton
hotels corporation using merging concept
from different individual and chain hotel.
First hotel introduce SOP system in all
division operation.
 FOUNDER OF THE ACCOMMODATION INDUSTRY
 Cesar Ritz 18th century (Europe); Introduce
different management theories in managing
hotel operation. In-coorperate the
management function into daily operation
activities.

 William Waldrorf Astor and John Astor IV;

Introduce hotel in different design and feature
by combining European and US hospitality
concept. It introduce different types of room
for different types of clientele in the hotel.
FOUNDER OF THE ACCOMMODATION INDUSTRY
 Kemmons Wilson 19th century (Europe); Introduce the
concept of FIT, GIT and SIT in the marketing plan.
Wilson also introduce different feasibility study for
different hotel development. (by conceptual study).
FOUNDER OF THE ACCOMMODATION INDUSTRY
 J.W. Marriott and J.W. Marriott Jr.;
Introduce hotel operation by different
types of service, facilities and in
cooperate the BCG research in studying
their target market.

 Ernest Henderson, Robert Moore and

Ray Schultz; Founded the concept of
subsidiary company and introduces inn
with hotels concepts
FUNCTIONS OF ACCOMODATION
Lockwood (1989) argues that accommodation
functions consist of:

 Operation issues (front office and housekeeping

operation during pre-arrival, arrival, in-house and
departure stage)

 Management issues (manning, revenue, cost

centers, serve and enrich society, managing profit
for the owners)
MANAGING ACCOMODATION OPERATION

 Manager plays the main important role in managing

hotel operation (Jones, 2000).
 Qualities of successful Accommodation Managers
starts from
1. Leadership
2. Attention to detail
3. Follow through
4. People skills
5. Patience
6. Ability to delegate effectively
CHALLENGES OF ACCOMMODATION INDUSTRY
 For accommodation industry to survive in the
competitive market; the industry should strongly
understand the six characteristics of services and its
implications:

1. Labor intensive (skill oriented)

2. Participation of customer (service technology)
3. Simultaneous production and consumption of the
service element
4. Output is difficult to measure (customer satisfaction is
vary)
5. Intangible element of the package
6. Service cannot be stored
MANAGING THE CHALLENGES OF
ACCOMMODATION INDUSTRY OPERATION
 To manage the challenges mention in slide 10,
many hotel industry expert had proposed few
strategy that will assist the accommodation to
attend to the challenges situation. The strategy
consists of:
1. Implementation of Product and services variances
2. Team work among revenue and support center
3. Differentiation of hotel core product to hotel
revenue
4. Operational planning
5. Revenue expectation (occupancy determination)
6. Customer focus (market orientation)
1. PRODUCT AND SERVICE VARIANCES
Bardi, J (2008) categories hospitality product & services into three different group of
services.
 World class
 Luxury service
 Upscale restaurant
 Exquisite decor
 Housekeeping service twice a day
 Oversized room & Elaborately decorated and furnished
 Exclusive amenities
 High ratio of employees to guest
 Executive floor

 Mid range
 The largest segment of the traveling public will experience this service
 Modest but sufficient service
 Hotel size: 150-299
 Good for small mice activities

 Economy/Limited service
 Provides clean, comfortable, inexpensive rooms and meet the basic needs of
guests
 Budget conscious and without frills
 Usually no food and beverage service
PRODUCT AND SERVICE VARIANCES
Intercontinental hotel
Marriott brands
group
1. Signature brand 1. Club vacations
2. Luxury 2. Resort and hotel
3. Life style collections
3. Inns clubs
4. Destination
entertainment 4. Inns express
5. Select –service lodging 5. Suites
6. Extended stay lodging
7. Time shares
8. Conference centers
9. Great America parks
PRODUCT AND SERVICE VARIANCES
PRACTICE IN HOSPITALITY INDUSTRY

1. Market heterogeneity: market focus (set the hotel

target market)
2. Revenue and cost effectiveness (price product
effectively)
3. Branding strategy
4. High possibility for international business venture
(venture into market diversification)
5. Business mutuality (internal stakeholder
practices)
2. TEAMWORK
 The operation between revenue and support center can be
describe as teamwork concept by Jamie Harris (2006),
Cooperate Management Training. His team work concept
mainly looking into how different division can work
together to achieve organization objectives.
 This teamwork concept mainly looking into four factors to
build the strong relationship in an organisation:
1. Strengths (departmental function)
2. Teamwork (collaborative relationship)
3. Alignment (connection)
4. Results (company objectives)
2. TEAMWORK
3. HOTEL CORE PRODUCT
 Product differentiation often refer back to Philip Kotler & Gary
Armstrong on product, services and branding strategy.
 Hotel Manager should set a strategy for the hotel product
differentiation to be more competitive for revenue generation and
long term sustainability.

3. HOTEL CORE PRODUCT STRATEGY
Emphasize on:
1. Before service (identifying customer expectation)
2. During service (identifying customer perception)
3. After service (identifying customer satisfaction for long term
sustainability and changes if require)

ROOM
*(comfortable product features, in-room service, room touch-up,
laundry service, etc.)

Services
*valet, concierge, business center.
4. OPERATIONAL PLANNING
 Implementation of standard at work place;
 Lean production
 HACCP
 ISO 9000

 A clear standard work will lead to productivity

 Good standard work should include Takt time, Standard WIP
(work instruction process) and sequence of operation
 Takt Time = working time available
customer demand for the production period
(Takt time is the required pace of production to meet demand)
 Detail of manual and technical (example opera for FO operation and HK
operation will be different)
 SOP (standard operation system)
5. REVENUE MANAGEMENT
 Often known as revenue management; a set of strategy that
combine all concept in assist the organization to achieve
maximum profit
 Hayes (2012) an effective revenue strategy concept should
emphasize on company:
1. Cost of operation
2. Marketing & Sales strategy
3. Management planning
4. Competitor analysis (external factors)
5. Stake holder relationship
6. Time factors
6. MANAGING ACCOMODATION BY MARKET
ORIENTATION

1. Market orientation by service factors: (combine both

internal and external factors)
“Not about understanding your customer and consumer,
but all the factors that will influence them to come back
to your hotel”

2. Market orientation by marketing perception

(customer focus- external factors)
“ selling product to the right customer at a right place,
right time and right price”
6. MANAGING ACCOMODATION BY MARKETING
PERCEPTION

 The objectives of market orientation should consider

on the following factors:

TARGET

WHEN? SEGMENT WHO?

POSITION
6. MARKET ORIENTATION BY
CLASSIFYING GUEST
Bardi, J (2008) group hotel guest into four different categories.

 Business Travelers
 Types of business travelers
 Specific needs of business travelers

 Pleasure/ Leisure Travelers

 Types of leisure travellers
 Characteristis of leisure travelers
 Business and pleasure travel

 Group Traveler
 Group business travel
 Institutional
 Corporate/ Government
 Group pleasure travel
 Organised tour groups
 International Travellers
 Needs of international guest
ACCOMMODATION OWNERSHIP AND BUSINESS
AFFILIATION (TYPES OF MANAGEMENT)
1. Independent operation
 Has no affiliation with other properties
 2 types :-
 Owner-operated business

 Owner managed

2. Chain operation
 Has a strong affiliation with other properties
 Imposes certain minimum standard rules, policies, and
procedures to restrict affiliate activities
 Ownership of the affiliate properties differ, may or not own
property.
 Three (3) forms of ownership:-
 Management contract
 Franchises

 Referral groups
CHAIN HOTELS
Management contracts
 Organisations that operate properties owned by
other entities

Franchise
 A method of distribution where one entity has
developed a pattern for doing business

Referral groups
 Called membership groups
 Consist of independent hotels that have banded
together for a common purpose
Management Franchising
Contracts
Similarities

Brand Recognition
CRS
National Marketing Support
Standard Operating Procedures

Differences

• Greater Quality Control • Less Quality Control

• Higher Fee to Owners
• Less Owner Control
• Higher Employee Standards
• Higher Performance Expectations
• Lower Fee to Owners
• Greater Owner Control
• Varying Levels of Employee
Experience and Training
SUMMARY
 The evolution of accommodation industry will be
the future trend for competitive business.
 Understanding the accommodation industries
challenges and used it as a strategy for revenue
generation.
 The important of operation and management
element for accommodation industry.
TUTORIAL

 Used the strategy mentioned in slide 11, explain how

this strategy might or might not applicable to the
following types of lodging operation.
 Limited-service hotels
 All suites
 Motels
Justify your answer.